Ninth Circuit Issues Second Opinion in Xilinx Case

Following the Jan. 13 withdrawal of its original opinion (78 U.S.L.W. 1464), the U.S. Court of Appeals for the Ninth Circuit has issued a second opinion in Xilinx Inc. v. Commissioner of Internal Revenue, holding that stock options issued by a controlling participant in a joint venture to develop intangible property are not costs that must be shared. The court originally held that under Treas. Reg. § 1.482–7(d)(1), “all costs” had to be shared by related parties in a cost sharing agreement (77 U.S.L.W. 1738). However, in this most recent decision, the court ...